How Myanmar dodged US sanctions to get Iranian jet fuel

Myanmar allegedly disguised Iranian jet fuel as South African diesel to bypass US sanctions, using trade contracts and import documents that misrepresented the cargo's origin and nature, a Reuters investigation has found.

According to Reuters report, a December 2025 shipment of around 113,000 barrels of Iranian jet fuel was covered by a $15.8 million contract between Myanmar-based Dynamic Wave and Thailand's Tawan-Oil Trading that described the cargo as South African diesel. Myanmar's foreign exchange regulator also authorised documents identifying the shipment as diesel rather than jet fuel, the investigation found.

The alleged deception comes as Washington seeks to restrict fuel supplies that could help Myanmar's military sustain airstrikes against civilians. The trade also exposes the challenges of enforcing US sanctions on Iran when shipments pass through regional intermediaries and are accompanied by documents that obscure their origin. The findings are particularly significant as the United States has recently reopened limited diplomatic contacts with Myanmar's military-backed government, raising questions about how Washington will balance engagement with continued pressure over the military's conduct and its access to restricted supplies.

The December shipment was not an isolated case. Reuters found that an earlier transaction in May 2025 involved a contract for 202,000 barrels of fuel worth $26 million, also described as South African diesel. The tanker Noble subsequently arrived in Yangon carrying just under 200,000 barrels of jet fuel, with satellite analysis tracing the shipment to Iran.

The shipments highlight the restrictions facing Myanmar's military-linked aviation sector. In August 2023, the US Treasury announced sanctions targeting foreign individuals and entities operating in Myanmar's jet-fuel sector, seeking to disrupt supplies that Washington said enabled the military to carry out airstrikes against civilians. Iranian fuel presents an additional sanctions risk because Washington maintains separate measures targeting Iran's petroleum trade.

By describing the cargo as South African diesel, the companies involved in the reported transactions obscured two critical details: the fuel's actual origin and its identity as aviation fuel.